Equity-release firm aims for over-60s

A new equity release company, Crown Equity Release, is launched this month.

The aim is to help homeowners aged over 60 to release locked-up value from their property to supplement their retirement income.

The firm is targeting IFAs as it believes clients should be given unbiased advice on how equity release can fit into their savings and investments.

Commission is 1 per cent to 1.5 per cent of the money received by the client.

Crown Equity Release, based in London and operating throughout the UK, aims to double its business from dealing with 25 properties and £3m a month by the start of 2002.

It says equity release is a more flexible way for the elderly to increase their income than buying an annuity and clients can rel-ease some or all their equity. The income is not affected by tax or interest.

The company believes the equity-release market will grow as people&#39s life expectancy and pressure on pension increases.

Managing director Mark King says: “Many people who effect a home income or equity-release scheme do so out of necessity to imp-rove a basic standard of living. Our clients will use the lump sum they obtain to top up their savings, reduce potential inheritance tax liabilities or enhance the quality of their lives by taking an extravagant holiday, buying a new car or improving their homes.”

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